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PRECIOUS-Gold rises as soft U.S. jobs data bolsters stimulus bets

Published 07/12/2020, 02:45 pm
Updated 07/12/2020, 06:48 pm
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(Adds comment, updates prices)

* Bipartisan stimulus deal suggests more compromise ahead- analyst

* Britain to begin Pfizer/BioNTech vaccine rollout this week

* Gold has resistance at $1,850 an ounce - analyst

* Interactive graphic tracking global spread of coronavirus: open

* https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer

Dec 7 (Reuters) - Gold ticked higher on Monday, as the metal drew support from grim U.S. jobs data that fuelled optimism over a U.S. stimulus deal, although gains were capped by coronavirus vaccine rollouts.

Spot gold prices XAU= rose 0.2% to $1,840.65 per ounce by 0725 GMT, while U.S. gold futures GCv1 were up 0.2% at $1,843.90.

"Softer jobs growth and tighter social mobility restrictions ostensibly lower the hurdle for a policy response from (U.S.) Congress," said Stephen Innes, chief global market strategist at financial services firm Axi.

Data on Friday showed the U.S. economy added the fewest jobs in six months in November. over a fresh pandemic relief package gathered momentum on Friday, as bipartisan U.S. lawmakers worked to put the finishing touches on a new $908 billion bill. the gold market might be disappointed with the size of the package, markets will likely take support from the bipartisan nature of the deal that suggests further compromise in the U.S Congress ahead, Innes said.

Gold is seen as a hedge against inflation that could result from large stimulus.

Given increased inflation expectations, rising coronavirus cases, continued dollar weakness and a stalling U.S. labour market, gold could test $1,900 in December, said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.

However, gold's gains were capped as Britain prepared to become the first country to roll out the Pfizer/BioNTech COVID-19 vaccine this week. has resistance at $1,850 an ounce, with a close above that pivot level setting the scene for a test of the resistance line at $1,920 an ounce, Jeffrey Halley, a senior market analyst at OANDA, said in note.

Silver XAG= fell 0.4% to $24.06 per ounce and platinum XPT= dropped 1.5% to $1,039.00, while palladium XPD= gained 0.8% to $2,363.00.

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